E-newsletter of Investing for the Soul December 30, 2016
Top ethical investing news for December 2016
Links may only be valid a limited time Commentaries by Ron Robins
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Navigating the Sustainable Investment Landscape. "A survey of over 100 investment professionals shows that institutional investors – including pensions, foundations, universities, and NGOs – are increasingly considering the material importance of social, environmental, and governance factors in constructing their portfolios... Despite the enthusiasm and more capital flowing, WRI found key gaps in the market that prevent even the most motivated asset owners from deploying capital sustainability."
This is an informative paper to read, particularly for institutional
investors new to sustainable investing.
Fossil Fuel Divestments Now Represent $5.2 Trillion. "A network of local governments, pension funds, faith organizations, philanthropies and wealthy individuals representing $5.2 trillion in assets have committed to — and in some cases already started — divesting from fossil fuel companies, according to a report released on Monday."
The odds of President elect Donald Trump inspiring a major reversal in the
fossil fuel divestment movement get slimmer everyday. In time he’ll come
to understand that the world is moving past fossil fuels and that industry
is entering old age.
The Just 100 -- America’s Best Corporate Citizens In 2016. "Social impact is woven into the mission statements of nearly every major company on the planet. But which companies actually practice what they preach? FORBES has partnered with Just Capital, a non-profit created by billionaire investor Paul Tudor Jones II, to determine which ones are the best corporate citizens--the Just 100.
In all, some 1,000 companies were scored and ranked within their industries according to ten metrics: worker pay and benefits, worker treatment, supply chain impact, community well-being, domestic job creation, product attributes, customer treatment, leadership and ethics, environmental impact and investor alignment."
This is a great new approach in determining the value of corporate actions
across a spectrum of stakeholder concerns. It should be well accepted in
the responsible investing community.
2016 Global RepTrak® by Reputation Institute. "Reputation Institute′s Global RepTrak® 100 uncovers the world′s most reputable companies in innovation, governance, citizenship and more. Download the report or view the recorded presentation of the results to discover which companies are leading the way in the reputation economy this year."
Reputation Institute’s reports are always worthwhile for ethical investors
Investors in the Americas show soaring demand for green investments but barriers still remain: HSBC survey. "According to the research, investors in the Americas are seeking more green investment opportunities, with nearly three quarters (74%) planning to increase their climate related or low carbon exposure... the report revealed that the vast majority of investors in the Americas (82%) believe a lack of credible opportunities is the largest obstacle to making green investments. Furthermore, 79% of the same investors cited moderately or highly inadequate disclosures as a top barrier to making green investments. "
With stock exchanges demanding more ESG disclosure from listed companies
and investors demanding the same, the onus on companies to produce better
and more detailed sustainability reports grows strongly.
Sustainability reporting in stock exchanges ’comes of age’. "As many as 21 stock exchanges across the world could introduce sustainability reporting standards in the coming months. They would join the 17 exchanges that currently recommend listed companies to report on environmental, social and governance (ESG) issues — going a step further by providing model guidance to participating companies."
I hope that US President-elect Donald Trump soon realizes that
sustainability pays. The rest of the world realizes it. It’s great news
that stock exchanges everywhere are creating sustainable reporting
standards for their listed companies.
EU Workplace Pensions Now Required to Incorporate ESG Issues. "The new directive will cover European workplace retirement plans, which is estimated to be a market of around 125,000 plans with €2.5 trillion investment. The new directive needs to be passed by the European Council (which is expected to take place in early 2017), following which there will be a 2-year period granted for Member States to transpose it into national law."
Assuming the European Council passes the directive, this will be a
terrific step forward setting a precedent for pension plan and other
investment regulatory authorities everywhere.
2016 ET Carbon Rankings Report. "The 2016 ET Carbon Rankings report represents an in-depth analysis of the greenhouse gas emissions data gathered to produce the public ET Carbon Rankings. In addition to providing further context to the Rankings and their application for low-carbon and fossil-free indexes, it assesses the current state of Scope 3 emissions disclosure and the emissions reduction potential across the most carbon-intensive sectors."
This is an illuminating report on the carbon rankings of the world’s
largest public companies.
Green bonds: New study shows extraordinary growth and signals potential in financing Europe′s climate and environment goals. "In 2012 USD 2.6 billion of green bonds were issued globally. By 2015 total issuance had multiplied to USD 41.8 billion. It rose to USD 74.3 billion by end of November 2016. European and Chinese issuers make up the largest share of the climate-aligned bonds market globally. In Europe, France and UK are the biggest issuers."[COMMENTARY] As the above figures suggest, there’s a huge latent market for green bonds. As most of us know, we’re still at the early stages of their issuance.
Green bonds: New study shows extraordinary growth and signals potential in financing Europe′s climate and environment goals, press release, December 2, 2016, European Commission, Belgium.
The league table of countries with the most ’caring’ investors. "Europeans are less concerned about environmental issues when it comes to selecting investments than Asians or Americans, according to a major study of attitudes in 28 countries."
The results of this survey are surprising! However, upon reflection,
perhaps they’re understandable.
Making Money Matter: Impact Investing to Change the World, by G.
Benjamin Bingham, Prospecta Press, 2015.
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Disclaimer: Neither The Soul Investor nor Ron Robins make investment recommendations. Nothing in this newsletter should be interpreted as a recommendation or solicitation to buy/sell any securities or investments. The Soul Investor is a source of general information and resources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors should consider their actions thoroughly and consult their professional advisers prior to taking any investment action. The Soul Investor does not necessarily agree with the opinions expressed in articles in its newsletter or offered on the web pages to which it might be linked. Such opinions are the responsibility of the writers themselves. Furthermore, The Soul Investor does not offer or provide any warranties, representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance, timeliness or usefulness of the information, materials or services in this e-newsletter, or other sites, to which it might be linked. Also, Mr. Ron Robins is not an investment advisor, nor is he licensed with any professional investment related body, and thus is not able to, nor does he make, any investment recommendations.
The Soul Investor is a publication of Investing for the Soul, a registered business name in Ontario, Canada. Copyright © 2016 Ron Robins. All rights reserved.